Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,260 2,520 2,520 6,300 Revenue $40,320 $54,180 $32,760 $127,260 Variable departmental costs 27,720 30,240 16,380 74,340 Direct fixed costs 6,300 5,040 3,780 15,120 Allocated fixed costs 7,560 8,820 8,820 25,200 Net income (loss) $(1,260) $10,080 $3,780 $12,600 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A

Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,260 2,520 2,520 6,300 Revenue $40,320 $54,180 $32,760 $127,260 Variable departmental costs 27,720 30,240 16,380 74,340 Direct fixed costs 6,300 5,040 3,780 15,120 Allocated fixed costs 7,560 8,820 8,820 25,200 Net income (loss) $(1,260) $10,080 $3,780 $12,600 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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